Sterlite Power, one of India’s leading private power transmission developers, and Singapore's sovereign wealth fund GIC have announced the signing of definitive agreements to set-up a new platform to develop and operate power transmission projects in India.
Via this arrangement, Sterlite Power will own the majority stake of 51 percent and GIC will own the remaining stake.
Moneycontrol -- on August 4, 2024 --was the first to report that Sterlite Power, which is backed by metals magnate Anil Agarwal's Vedanta Group, had embarked on an internal restructuring exercise to unlock value as part of which the firm sought to carve out its solutions vertical and then induct GIC as a strategic JV partner for the power transmission business.
"The JV platform will be well-positioned to target the new opportunities emerging from the need for over $ 13 billion of capex announced by the Government of India," according to an official statement on the transaction.
Commenting on the JV, Pratik Agarwal, Managing Director, Sterlite Power, said “India's renewable vision calls for investments in transmission to unlock the full potential of 500 GW of renewable power. This joint venture signals global confidence in India's growth vision. With GIC as our partner, we are poised to play a leading role in India's transmission sector, starting with the USD 13 billion bid pipeline. We stay committed to building world class assets and empowering humanity by addressing the toughest challenges of clean energy delivery.”
Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said, “We are pleased to partner with Sterlite Power, a leading transmission infrastructure developer and operator, to support India’s energy transition ambitions. We believe transmission infrastructure will play a crucial role in facilitating the growth of renewable energy supply to sustainably meet the increasing power demand in the country. India is a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors including infrastructure development.”
Sterlite Power was advised by Deutsche Bank, AZB Partners, and Khaitan & Co, while GIC was advised by Avener Capital, Shardul Amarchand Mangaldas & Co and PWC.
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